Buyer Demand Drives Home Prices Up 8.5% in July

Rhea-AI Summary

In July 2020, the national median home price surged nearly to $350,000, reflecting an 8.5% year-over-year increase, the largest since November 2018. Inventory levels dropped 33% from the previous year, while homes sold in an average of 60 days, consistent with last year's performance. The Northeast outperformed other regions, with 48 out of 50 major metros reporting price gains. However, Miami and Orlando faced declines of -1.5% and -0.9%, respectively, due to COVID-19 impacts. The report highlights a sharp contrast in the housing market's recovery across the U.S. amid the pandemic.

Positive

• National median home price reached nearly $350,000, up 8.5% YoY.
• Average days on market improved to 60 days, matching last year's performance.
• Northeast market showed strong recovery with significant price increases.

Negative

• Inventory decreased by 33% YoY, indicating market supply issues.
• Only two of the 50 largest metros saw price declines: Miami (-1.5%), Orlando (-0.9%).

SANTA CLARA, Calif., July 30, 2020 /PRNewswire/ -- Accelerating price growth pushed home prices into uncharted territory in July with the national average median home price reaching nearly $350,000, while inventory continued to evaporate and homes sold in an average of 60 days -- the same as last year -- according to realtor.com^®'s July Monthly Housing Trends report. Following the nation's COVID trajectory, markets in the Northeast outperformed other regions of the U.S. in nearly every housing metric.

National listing price growth continued as the summer homebuyer season was in full swing, increasing by 8.5 percent in July year-over-year. After prices stumbled in April, home prices have continued to accelerate each month since. July's listing price growth of 8.5 percent marks the largest leap in median listing prices since November 2018 and equates to a $27,000 increase over last year.

Of the nation's 50 largest metros, 48 saw year-over-year gains in median listing prices in July, up from 46 last month. Only two of the 50 largest metros saw prices decline in July: Miami-Fort Lauderdale-West Palm Beach, Fla. (-1.5 percent); and Orlando-Kissimmee-Sanford, Fla. (-0.9 percent) -- both areas severely hit by COVID during June and July.

Nationally, homes are selling in an average of 60 days. This is a dramatic improvement over June when homes spent an additional 15 days on the market on average compared to the previous year.

"The Coronavirus has impacted every corner of the U.S., but it hasn't hit every area equally or at the same time. The U.S. housing market performance is closely mirroring COVID's path, which is providing clues into what we can expect for various housing markets in the months to come," said realtor.com^®' Chief Economist, Danielle Hale. "After being particularly hard hit in March and April, new Coronavirus cases remain stable in the Northeast and we're seeing buyers return to the market in force. If this same trend follows in the South and Midwest -- where outbreaks continue to rise, we could see a flurry of activity well into the fall, especially as schools delay their openings."

Homes now selling faster than last year in the Northeast
Much of the days on market improvement is being driven from the Northeast, where properties are being scooped up six days faster than last year. Markets with the least time on market compared to last year included Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. (-13 days); Boston-Cambridge-Newton, Mass-N.H. (-12 days); and Hartford-West Hartford-East Hartford, Conn. (-12 days). At the same time, several large metro areas saw increases in time spent on the market, including Miami-Fort Lauderdale-West Palm Beach, FL (+24 days); Milwaukee-Waukesha-West Allis, WI (+8 days); and Los Angeles-Long Beach-Anaheim, CA (+8 days).

Inventory at all-time lows, but new listings trend improves compared to June
The number of homes for-sale across the U.S. was down 33 percent, or 440,000 listings, compared to a year ago. July's inventory decline is an acceleration from June when listings declined by 27.4 percent.

Within the nation's 50 largest metros, inventory declined by 34.8 percent year-over-year, an acceleration from June's decline of 26.5 percent. In July, none of the 50 largest metros saw an inventory increase on a year-over-year basis and 45 of the 50 saw greater inventory declines than last month. Metros which saw the largest declines in inventory included Riverside-San Bernardino-Ontario, Calif. (-50.4 percent); Baltimore-Columbia-Towson, Md. (-48.7 percent); and Providence-Warwick, R.I.-Mass. (-47.4 percent).

New listings were down 13.4 percent year-over-year, a significant improvement over April, when new listings were down 44.1 percent. Much like price growth and days on market, the nation's inventory recovery is being led by the Northeast where new listings were down only 1.2 percent year-over-year. Throughout the rest of the country, new listings were down 10.0 percent in the West, 16.1 percent in the South, and 20.8 percent in the Midwest.  

Metros With Biggest Improvement to Time Spent on the Market

Metro	Median Days on Market Y-Y	Median Days on Market	Median Listing Price	Median Listing Price YoY	New Listing Count YoY	Active Listing Count YoY
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.	-13	46	$340,000	18.5%	-10.0%	-44.5%
Boston-Cambridge-Newton, Mass.-N.H.	-12	37	$675,050	12.5%	13.9%	-31.0%
Hartford-West Hartford-East Hartford, Conn.	-12	43	$299,050	5.9%	-2.0%	-29.4%
Virginia Beach-Norfolk-Newport News, Va.-N.C.	-12	44	$331,995	10.7%	-8.6%	-41.3%
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.	-11	32	$529,995	11.6%	-12.2%	-42.4%
Baltimore-Columbia-Towson, Md.	-8	43	$354,950	4.5%	-20.9%	-48.7%
Rochester, N.Y.	-7	29	$249,950	8.7%	-7.5%	-36.3%
Raleigh, N.C.	-6	51	$384,120	2.4%	-7.3%	-34.3%
Nashville-Davidson--Murfreesboro--Franklin, Tenn.	-6	31	$389,995	3.7%	-9.3%	-21.6%
Phoenix-Mesa-Scottsdale, Ariz.	-5	50	$411,615	6.6%	-10.2%	-44.8%
Austin-Round Rock, Texas	-5	45	$392,273	7.5%	-5.5%	-34.0%
San Jose-Sunnyvale-Santa Clara, Calif.	-4	34	$1,217,050	7.7%	4.0%	-29.4%
Pittsburgh, Pa.	-4	56	$249,950	25.0%	-9.8%	-32.5%
Jacksonville, Fla.	-4	66	$319,338	1.0%	-19.8%	-28.7%
Seattle-Tacoma-Bellevue, Wash.	-3	35	$629,925	4.1%	1.8%	-27.5%
Columbus, Ohio	-3	38	$332,000	4.6%	-24.4%	-43.4%
Cleveland-Elyria, Ohio	-3	52	$235,050	13.5%	-25.5%	-47.0%
Memphis, Tenn.-Miss.-Ark.	-3	51	$260,050	11.1%	-25.6%	-44.8%
Birmingham-Hoover, Ala.	-3	57	$275,000	5.8%	-16.1%	-32.9%
Charlotte-Concord-Gastonia, N.C.-S.C.	-3	49	$369,550	5.6%	-23.5%	-44.7%
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.	-2	42	$348,500	4.8%	-10.9%	-32.2%
Dallas-Fort Worth-Arlington, Texas	-2	47	$359,750	1.8%	-16.8%	-35.8%
San Diego-Carlsbad, Calif.	-2	39	$792,500	10.5%	-17.8%	-41.8%
Cincinnati, Ohio-Ky.-Ind.	-2	47	$339,950	18.5%	-28.5%	-46.6%
San Francisco-Oakland-Hayward, Calif.	-2	34	$1,054,210	15.3%	3.7%	-14.2%
Providence-Warwick, R.I.-Mass.	-1	50	$434,500	11.4%	-15.2%	-47.4%
Atlanta-Sandy Springs-Roswell, Ga.	-1	51	$350,050	6.4%	-19.6%	-37.0%
Oklahoma City, Okla.	-1	46	$284,329	11.3%	-26.1%	-31.9%
New York-Newark-Jersey City, N.Y.-N.J.-Pa.	-1	63	$593,034	6.0%	24.0%	-15.6%
Louisville/Jefferson County, Ky.-Ind.	-1	44	$289,950	4.7%	-33.1%	-47.1%
Denver-Aurora-Lakewood, Colo.	0	36	$544,300	8.9%	-8.4%	-33.1%
Houston-The Woodlands-Sugar Land, Texas	0	53	$327,948	3.0%	-8.5%	-27.4%
Sacramento--Roseville--Arden-Arcade, Calif.	0	41	$525,050	5.2%	-22.5%	-43.5%
Indianapolis-Carmel-Anderson, Ind.	0	49	$302,550	3.7%	-26.1%	-42.0%
Riverside-San Bernardino-Ontario, Calif.	1	54	$450,000	7.4%	-23.2%	-50.4%
Buffalo-Cheektowaga-Niagara Falls, N.Y.	1	39	$242,450	10.2%	-0.7%	-37.0%
Tampa-St. Petersburg-Clearwater, Fla.	1	59	$298,050	5.3%	-16.9%	-37.1%
Minneapolis-St. Paul-Bloomington, Minn.-Wis.	2	40	$367,050	4.9%	-6.0%	-26.1%
Richmond, Va.	2	53	$357,450	7.5%	-24.5%	-37.0%
Detroit-Warren-Dearborn, Mich	2	38	$280,000	6.8%	-24.9%	-35.2%
Las Vegas-Henderson-Paradise, Nev.	3	49	$340,050	4.7%	-11.9%	-14.4%
Kansas City, Mo.-Kan.	3	53	$351,025	12.3%	-31.7%	-45.3%
St. Louis, Mo.-Ill.	3	61	$251,800	9.5%	-14.8%	-34.5%
New Orleans-Metairie, La.	4	72	$315,050	6.9%	-15.9%	-28.3%
Portland-Vancouver-Hillsboro, Ore.-Wash.	4	45	$499,950	5.3%	-15.5%	-41.4%
Orlando-Kissimmee-Sanford, Fla.	5	63	$320,050	-0.9%	-3.7%	-17.2%
San Antonio-New Braunfels, Texas	5	58	$315,545	3.5%	-18.2%	-30.7%
Los Angeles-Long Beach-Anaheim, Calif.	8	54	$994,154	24.3%	-10.4%	-22.9%
Milwaukee-Waukesha-West Allis, Wis.	8	47	$362,450	3.7%	-25.9%	-38.1%
Miami-Fort Lauderdale-West Palm Beach, Fla.	24	120	$403,826	-1.5%	-1.9%	-11.6%

About realtor.com^®
Realtor.com^® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com^® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com^® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com^® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS^®. For more information, visit realtor.com^®.

Media Contacts: 
Cody Horvat, cody.horvat@move.com

 

View original content:http://www.prnewswire.com/news-releases/buyer-demand-drives-home-prices-up-8-5-in-july-301102832.html

SOURCE realtor.com

FAQ

What was the median home price in July 2020 according to realtor.com®?

The median home price reached nearly $350,000 in July 2020.

How much did home prices increase year-over-year in July 2020?

Home prices increased by 8.5% year-over-year in July 2020.

What was the average time homes spent on the market in July 2020?

Homes sold in an average of 60 days in July 2020.

Which region of the U.S. outperformed in housing metrics in July 2020?

The Northeast outperformed other regions in nearly every housing metric.

What were the inventory levels for homes in July 2020?

Inventory levels were down 33% compared to a year ago.